The Trump administration has officially pulled back federal efforts to aggressively police the crypto industry. A new directive tells the Department of Justice (DOJ) to step away from pursuing cases against crypto platforms for indirect misuse or user-driven offenses.
Instead, the DOJ is now tasked with focusing on people who use digital assets for clear criminal conduct like terrorism, trafficking, or organized crime. This pivot marks a major shift in federal enforcement strategy and aligns with Donald Trump’s broader approach to loosening crypto-related oversight.
DOJ Dissolves Crypto Task Force
In a newly released memo, Deputy Attorney General Todd Blanche ordered the DOJ to dismantle its National Cryptocurrency Enforcement Team (NCET). That team was once the central hub for investigating crypto-related violations.
Blanche criticized the former approach, saying it blurred the line between regulation and prosecution. According to the memo, criminal prosecutors should not be acting as de facto regulators. That role, he wrote, belongs to Congress and financial agencies not law enforcement.
With the NCET gone, the DOJ no longer plans to target service providers simply because bad actors used their tools. Platforms that do not actively assist in crimes or knowingly break the law will no longer be at risk of criminal prosecution under this directive.
Shift in DOJ’s Priorities
The new memo instructs prosecutors to focus only on cases involving digital currencies used directly in serious crimes. These include:
- Financing terrorism
- Running trafficking operations
- Coordinating cyberattacks
- Supporting cartel networks
- Backing organized criminal rings
The guidance also states that exchanges, wallets, and privacy tools are not to be treated as criminal just because they are used in illicit schemes. Unless a service is deliberately helping criminals, the DOJ won’t press charges.
This revised focus creates clearer boundaries for law enforcement while giving crypto companies more operational certainty.
Trump’s Broader Crypto-Friendly Policies
This move builds on Donald Trump’s ongoing strategy to support the blockchain economy in the U.S.
His administration had previously called for lighter regulations from agencies like the SEC and CFTC. He also initiated plans for a national digital asset reserve signaling federal interest in developing the digital economy.
Now, this DOJ policy shift sends a strong message: innovation should not be stifled by aggressive legal threats. Instead, enforcement should be narrowly tailored to real threats.
What Happens to Active Cases?
Some recent prosecutions may come under review as this new guidance rolls out.
One case involves Tornado Cash, a popular crypto mixer. Prosecutors say North Korean hackers used the service to launder more than $1 billion. Under the new DOJ framework, officials would need to prove that Tornado Cash actively contributed to criminal activity—not just that criminals used it.
Another case centers on Avraham Eisenberg, who was convicted of market manipulation and stealing over $100 million through an exploit. While his actions were criminal, the government’s broader scrutiny of certain trading mechanisms could now be limited.
This change may also impact how the DOJ evaluates the fraud case against Sam Bankman-Fried, the former head of FTX. The new approach could force prosecutors to refine how they pursue financial crimes in digital asset environments.
Encouraging Innovation Without Sacrificing Security
The Trump administration’s new stance marks a deliberate effort to balance law enforcement with technological growth. By pulling back from prosecution-led regulation, the DOJ is no longer treating crypto developers or exchanges as criminals unless they cross specific legal lines.
While the agency remains committed to cracking down on those who use digital assets to fund terrorism, traffic drugs, or commit cyberattacks, it now aims to do so without punishing the infrastructure of blockchain itself.
Industry stakeholders may see this as a chance for clearer rules, less fear, and more room for innovation.
Disclaimer: This article is for informational purposes only and should not be taken as legal, financial, or investment advice.
